U.S. government doesn’t plan to end its part ownership of GM in the near future

Article by Christian A., on May 14, 2012

The U.S. government has no foreseeable plans to put an end to its being a part owner of General Motors, The Detroit News reports. Tim Massad, who serves as the acting assistant secretary for financial stability at the U.S. Treasury, said that there's no timetable yet for the government to leave GM. Massad said that “real progress” has been made by GM but then, it’s the market that hasn’t given it much credit.

Massad looks out for the $700 billion Troubled Asset Relief Program as well as the 26% stake of the government in GM common stock. He asserted that the U.S. Treasury would have to balance its goal to maximize recovery for the taxpayers with how fast it makes its exit. The publication estimates that if the government exits now, it would incur losses of over $15 billion on the $49.5 billion bailout at present stock prices.

The U.S. government has so far got back about $23 billion of its GM bailout. Initially, it got a 61% stake in the automaker. To break even, the Treasury would have to receive $53 on average for each of its 500 million shares in GM stock to break even.

The Obama administration doesn’t intend to sell any GM stock before the November election since voters may be reminded about the financial costs of the bailout, according to senior administration officials. [source: Autonews]

Topics: gm

If you liked the article, share on:

Comments

Recommended

It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 2017
Jaguar fans, as well as auto enthusiasts in general, has a reason to celebrate this week as the brand gave everyone a peek of the new 2018 XF Sportbrake. This...
by - April 28, 2017
BMW has revealed that its i brand has partnered with TED in order to launch a worldwide search of unique ideas under the title “NextVisionaries.” This brand has long been...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries